Comments
Mauritius has claimed that it has exchanged information related to tax in over 170 cases with India over three years. It also said that the two countries have made big progress on the Double Taxation Avoidance Agreement since 2006.
Addressing a press conference, the Foreign Minister of Mauritius, Dr Arvin Boolell, said some of the information exchanged was even outside the pact that the two countries have with each other.
With an obvious reference to General Anti Avoidance Rules, he felt that domestic legislations should not override the treaty between the two countries. “Domestic legislations should not override the taxation treaty between India and Mauritius,” Dr Boolell said.
India-Mauritius tax treaty provides that capital gains arising in India from investments in the country from the island nation can only be taxed in Mauritius. As Mauritius does not tax capital gains, investments that are routed through the country escape this levy.
A large quantum of foreign investments in India are routed through Mauritius to escape the tax net, which has prompted the Government to bring out the General Anti-Avoidance Rules to prevent abuse of the tax treaty.
“Mauritius has done everything to curb round tripping,” Dr Boolell said. Asked about India’s demand for reworking DTAA, he also said that if there is room for improvement, we will constantly make room for improvement, of course, in respect and in compliance with the best international practices.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.